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In 2017, the previously-announced seven-year break-even EI
premium rate-setting mechanism will be implemented. which is expected to reduce
the EI premium rate from $1.88 in 2016 to approximately $1.49 in 2017.

Extending Compassionate Care Benefits

The Budget proposes to extend the duration of Compassionate
Care Benefits from the current 6 weeks to 6 months, as of January 2016.
Compassionate Care Benefits, through the Employment Insurance program, provide
financial support to people who have to be away from work temporarily to care
for a family member who is gravely ill with a significant risk of death.

Personal
Income Tax Measures

The Budget increased the annual limit to $10,000
for the 2015 and subsequent taxation years, with no further increases for
inflation.

Home Accessibility Tax Credit

This non-refundable credit will be 15% of up to
$10,000 of eligible expenses per year, per qualifying individual, to a maximum
of $10,000 per eligible dwelling. This tax credit will be available for
expenditures made after 2015.

The 2015 Federal Budget reduced the RRIF
withdrawal factors for both pre-1993 and post-1992 RRIFs. All RRIFs,
LIFS and LRIFs now use the same factors, regardless of the year in which the
plan was started.

The Budget proposes to revise the calculation of the Family
Tax Cut for the 2014 and subsequent taxation years so that the transfer of
education-related credits between spouses will not reduce the Family Tax Cut tax
credit.

Dispositions of certain private corporation shares and real
estate occurring after 2016 will be exempt from capital gains tax when the
proceeds are donated to a qualified donee. This measure was not included
in Bill C-59. The 2016 Federal budget

Remittance Thresholds for Employer Source Deductions

The budget proposes to reduce the frequency of remittance of source
deductions for the smallest new employers, by allowing eligible employers
to immediately remit on a quarterly basis. Eligible employers will
be new employers with withholdings of less than $1,000 for each month.

Synthetic Equity Arrangements

Budget 2015 proposes to modify the dividend rental arrangement rules to
deny the inter-corporate dividend deduction on dividends received by a
taxpayer on a Canadian share in respect of which there is a synthetic
equity arrangement.

Budget 2015 provides a CCA rate of 50% on a
declining-balance basis for machinery & equipment acquired after 2015
and before 2026 primarily for use in Canada for the manufacturing and
processing of goods for sale or lease. Eligible assets are those
that are currently in Class 29 with a temporary 50% CCA rate, and the new
CCA Class will be Class 53. The half-year rule will apply to Class
53.

Eligible assets acquired in 2026 and later years will be in Class 43
with a 30% declining-balance rate.

Consultation on Active versus Investment Business re
the Small Business Deduction

Active
business income, which is eligible for the small
business deduction, does not include income from a "specified
investment business". A specified investment business usually has the
purpose of earning income from property. However, a specified investment
business does not include a business with more than 5 full-time employees, which
results in the small business deduction being available even though the
principal purpose is to derive income from property.